📊 MACD on BTC: signal for growth or reversal?
MACD (Moving Average Convergence Divergence) measures the divergence of moving averages:
- MACD = EMA(12) − EMA(26)
- Signal line = EMA(9) of MACD
- Histogram = MACD − Signal
🔍 BTC/USDT Data
- Price: ~$107,000
- MACD(12,26,9) on 4h: MACD > Signal, histogram is rising (bullish trend)
📊 Analysis
1. MACD crossing above Signal → entry signal for LONG.
2. Decrease in histogram → weakening momentum, possible correction.
3. MACD crossing below Signal → exit or SHORT signal.
🛠 Strategy (4h)
1. Entry: MACD crossed Signal from below.
2. Profit taking: histogram started to decline or MACD crossed Signal from above.
3. Stop-loss: 1–2% below entry point.
4. Take-profit: 3–5% from entry.
5. Confirmation: check RSI (do not enter overbought) and volumes.
🎯 Tips
- Combine MACD with RSI or volumes for reliability.
- In sideways movements, signals may be false.
- MACD divergences (price rising, MACD falling) — a strong sign of reversal.
🤔 Question
How do you use MACD in your BTC trades?
